The American Property Casualty Insurance Association (APCIA) said it supports reforms to thwart legal system abuse in New York state’s 2027 budget.
APCIA praised New York Gov. Cathy Hochul for enacting the reforms, saying the changes will restore fairness, reduce costs and improve insurance affordability. The budget legislation includes key provisions to tighten the state’s no fault “serious injury” threshold, cap non-economic damages for bad actors, and reform comparative negligence laws.
“Governor Hochul is taking an important step to fix a system that has been driving up costs for New York families for far too long,” Kristina Baldwin, APCIA’s department vice president of state government relations, said. “These reforms will promote fairness in auto accident lawsuits while discouraging abuse that ultimately raises premiums for everyone.”
APCIA said the reforms curb costly legal system abuse while preserving compensation for medical costs and lost wages for those who are truly injured. Additionally, the reforms ensure only legitimate injuries qualify for non-economic damages; Curb excessive “pain and suffering” awards; and restore fairness in the system by capping non-economic damages for bad actors. The combined changes discourage opportunistic litigation, promote accountability, and support a more stable insurance marketplace, the organization said.
Reforms address the root cause of rising legal system costs, the group said.
“These commonsense reforms are an important step toward improving affordability and protecting consumers,” said Baldwin. “APCIA looks forward to working with the Governor and state leaders to ensure these measures are fully implemented and deliver results for New Yorkers.”